UK's Body Shop Faces Bankruptcy as Business Slides

14 Feb, 2024

UK's Body Shop Faces Bankruptcy as Business Slides

The UK branch of The Body Shop, an iconic cosmetics company celebrated for its ethical hair and skin products, has declared bankruptcy, putting numerous jobs in jeopardy, as announced by administrators on Tuesday. FRP Advisory has been tasked with overseeing the administration process, a measure aimed at salvaging parts of the firm amidst financial turmoil.

Tony Wright, Geoff Rowley, and Alastair Massey of FRP have been appointed as joint administrators of The Body Shop International Limited, responsible for managing the UK business operations, according to an FRP statement. This strategic move aims to provide stability and flexibility, ensuring the preservation and revitalization of the esteemed British brand.

Creditors and employees will receive updates from administrators as the situation progresses. Despite being purchased by German private equity firm Aurelius in November, The Body Shop struggled amidst challenging economic conditions, particularly during the crucial Christmas trading period, leading to a decline in sales and eventual administration.

Founded in 1976 by Anita Roddick, The Body Shop has been a fixture on the British high street, although ownership has changed hands since Roddick sold it to L'Oreal in 2006. With approximately 200 stores in the UK and a global presence spanning over 70 countries, The Body Shop directly employs around 10,000 individuals, with an additional 12,000 employed via franchises.

Roddick's vision focused on cruelty-free products and environmental sustainability, establishing the brand as an advocate for ethical consumerism. However, in recent years, competitors like Lush have overtaken The Body Shop's market appeal, drawing younger consumers with innovative products and eco-conscious initiatives, highlighting the evolving landscape of the beauty industry.

Despite ongoing financial challenges and ownership transitions, administrators remain optimistic about restructuring efforts, emphasizing the importance of focusing on the UK business to ensure The Body Shop's future viability and success